Results

Objectives and Key Results (OKRs) Turns COOs into Transformation Leaders

As a general rule of thumb, management theory has steadily fallen behind what new technologies are making possible. Digital performance management, talent analytics, work coordination and other powerful new Future of Work capabilities are now commonplace because of new breakthroughs in technologies and design.

But these developments are often poorly accounted for in how we strategically manage our businesses. Now a growing body of evidence has demonstrated that a potent enterprise-wide management approach that was originally pioneered by leading technology companies beginning a few decades ago has demonstrated real value in improving how we operate and transform our organizations. What's more, this approach can be combined with the aforementioned Future of Work technologies to consistently achieve better business outcomes.

Known as Objectives and Key Results, or OKRs, the approach was first used widely by senior managers at Intel, where it then spread to Google and was subsequently adopted by LinkedIn, Twitter, Dropbox, Spotify, AirBnB and Uber. It's hard not to notice that these companies are leaders in their industries, and it's widely believed that OKRs helped them get there.

The Spectrum of Managing Objectives and Key Results (OKRs)

The idea behind OKRs themselves is simple, and that's also why they work so well: OKRs help organizations better understand and achieve their objectives through clearly defining and then measuring concrete, specific outcomes.

It's the simplicy and therefore the acccessibiily of OKRs that makes them interesting right away. But it's the results they bring about that keeps them in place. In my experience, when I run across a top technology team in the industry, I can tell soon after we meet whether they are using OKRs. The team is directed, focused, and each member clearly knows what they are about. This relentless focus on bringing about a desired result in the operations of a company has since led to OKRs spread out well beyond its tech roots and into the broader functioning of organizations today. 

I've mentioned OKRs in the context of operations several times now. Although the Chief Information Officer (CIO) has often been the entry point for OKRs in a typical organization in years past, it is increasingly the Chief Operating Officer (COO) , the role most chiefly responsible for the day-to-day operations of an organization, that is bringing them to bear operationally. Intriguingly, when I come across a COO using OKRs, they are often grappling with major changes that they have struggled to progressively activate in the day-to-day functioning of the organization.

With OKRs tied so intimately with the results that are sought by an organization -- including its teams and individual contributors -- the COO can use the future-looking view that the approach is defined by to drive large-scale changes, needed enterprise-wide shifts, and even overarching digital and business transformation.

The secret of course is being able to effectively adopt and wield OKRs across the organization. Given the growing interesting that COOs have in tapping into the results that OKRs have demonstrated in the field, I've recently published a new research report that explores how COOs can get the most effective results from the approach. In particular, it is in balancing the maturity of OKRs with the scale, which can be greatly assisted by an enabling platform that's been shaped for the purpose (see figure above.)

This new research is one of the very first that explores how to activate and succeed with OKRs in operations. Highlights include:

  • Developing a rollout and operations plan for OKRs
  • The key review dimensions for OKRs
  • How to use to OKRs as a top-level operating model
  • Using automation to assist the OKR process
  • Building an effective operational capability around OKRs

If you're seeking the how, what, and whys of COOs and OKRs, please read my new report — OKRs: COOs Can Drive Sustainable Change with This Breakthrough Approach â€” which provides a thorough examination of OKR methodology through the lens of the COO role. You can download a complimentary copy of the report for a limited time, courtesy of GTMHub.

Objectives and Key Results (OKRs) for the Chief Operating Officer

For another exploration of OKRs and the COO in more detail please join an all-star cast on the topic of OKRs for The Horizontal Thinkers Roundtable: Chief Operating Officer Edition. It's a valuable chance to participate in OKR-centric conversations with other COOs. Please register for the event to get the latest perspectives.

The Horizontal Thinkers Roundtable: Chief Operating Officer Edition

My Current Future of Work Research and Analysis

Building a new, better, and more collaborative future of work post-pandemic | Citrix

The Crisis-Accelerated Digital Revolution of Work

Reimagining the Post-2020 Employee Experience

It's Time to Think About the Post-2020 Employee Experience

How Work Will Evolve in a Digital Post-Pandemic Society

Revisiting How to Cultivate Connected Organizations in an Age of Coronavirus

Working in a coronavirus world: Strategies and tools for staying productive | ZDNet

A Checklist for a Modern Core Digital Workplace and/or Intranet

Creating the Modern Digital Workplace and Employee Experience

The Challenging State of Employee Experience and Digital Workplace Today

Future of Work Chief Analytics Officer Chief Data Officer Chief Digital Officer Chief Executive Officer Chief Information Officer Chief People Officer Chief Revenue Officer Chief Supply Chain Officer

Planful Gets Predictive, Heating Up Augmented Planning Era

Planful Predict portfolio starts with signal detection and forecasts aimed at improving financial and operational planning, but there’s more to come.

Financial and operational planning is all about preparing for future outcomes. The better you can see into the future, the better prepared you will be to proactively respond to whatever comes your way.

Accurate foresight is the promise of Predict: Signals, a new product released June 9 by Planful, the cloud-based financial planning, analysis and consolidation vendor. Predict: Signals has been in private preview with ten Planful customers over the last six months, and June 9 marked general availability to all customers. The promise of this optional new feature is to augment human capabilities by using machine learning (ML) to:

  • Surface anomalies, including those that are the root causes of variances from plans
  • Identify notable patterns, particularly those that point to risks
  • Augment human planning and decision-making efforts with ML-supported analysis of forecasts.

Prediction has been squarely in the domain of data scientists for decades, but in recent years we’ve seen automation and augmentation features designed to democratize these capabilities. AutoML features, for example, are making predictive techniques accessible to data warehouse professionals, while augmented analytics features are doing the same for business intelligence users.

Augmented predictive features are a much more recent phenomenon within the planning space, and they promise to improve the efficiency and effectiveness of financial planning and analysis (FP&A) professionals. Predict: Signals, for example, trains predictive models using customer’s historical data. When trained on at least 36 months of data, Planful says Predict: Signals can apply forward-looking anayses to financial projections and deliver insights with 95%-plus confidence levels.

What happens when part of that history includes an abnormal year, I naturally wondered given the pandemic experience? Planful says the feature’s built-in algorithm can identify sections of data, like those seen during last year’s business swings, that have the potential to skew the model and can normalize that data.

Predict: Signals does its training behind the scenes, without any need for data science expertise on the part of Planful customers. Pricing of this add-on feature is based on the volume of data used for training (as measured in gigabytes), and there a multiple subscription and custom pricing options. Once the model is trained, it will validate any forward looking forecast, checking for abnormalities. Confident forecasts are a great starting point for more realistic, on-target what-if scenario planning, and there’s no limit to the number of scenarios you can analyze.

Predict: Signals highlights forecast values that are at low-, medium- or high-risk of not being realized, supporting variance analysis, replanning and proactive action.

As actual performance data rolls in, Predict: Signals supports variance analysis, spotting risks and the underlying causes of exceptions. It also delivers new sets of predicted values, including upper, lower and median values – good goal posts for base-case, best-case and worst-case planning. The feature won’t make any decisions for the planner – it’s meant to augment and not replace the human -- but it does save them time by surfacing the real problems and risks they should address and the positive surprises they should try to maximize.

Planful has more capabilities on the Predict roadmap, so Planful customers can expect a continuing rollout of new augmented capabilities over the next few years. We’ve seen a similar pattern of machine-assisted features gaining traction in the BI and analytics space in recent years, and it has helped those platforms reach a wider community of users. I’m eager to see whether computer-augmentation will help accelerate the move of planning into sales, human resources and other operational areas.   

Data to Decisions Tech Optimization Revenue & Growth Effectiveness New C-Suite Innovation & Product-led Growth Future of Work Next-Generation Customer Experience Digital Safety, Privacy & Cybersecurity business finance ML Machine Learning LLMs Agentic AI Generative AI Robotics AI Analytics Automation Quantum Computing Cloud Digital Transformation Disruptive Technology Enterprise IT Enterprise Acceleration Enterprise Software Next Gen Apps IoT Blockchain Leadership VR Marketing SaaS PaaS IaaS CRM ERP Healthcare Customer Service Content Management Collaboration Chief Customer Officer Chief Executive Officer Chief Financial Officer Chief People Officer Chief Information Officer Chief Technology Officer Chief AI Officer Chief Data Officer Chief Analytics Officer Chief Information Security Officer Chief Product Officer

Big Idea: Compete on Data Supremacy

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Data Supremacy

DDDN's Are The Heart Of Data Supremacy

Here’s what I mean, because data is the foundation and first priority of every Data-Driven Digital Network (DDDN) that wants to grow, you have to understand how the data is shared, monetized, and controlled–so identifying the biggest pools of quality data and how that data is consumed is essential.

Data supremacy isn’t so much about having the most data in quantity but having the most qualitative, well-curated, high context data. If you can learn how the data interacts with each other and pick up on the patterns that arise from these interactions, you’re set up for success.

These insights come from their “interactions” among all the data produced and captured. Successful DDDNs are masters at identifying the patterns that emerge from these interactions. These patterns lead to “precision decisions,” from how much to charge for a product to what product should be recommended to which customers.

My book, "Everybody Wants to Rule the World," starts here with DDDNs and ends with winning in the age of the new monopoly. Available for pre-order now: https://amzn.to/3uR9Q9I

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The Work of Marketing Is Hard, and Adobe Is Totally Here for It

Marketing—or more specifically the act of designing, developing, and deploying engagements to foster (profitable) relationships—is hard work.

The role of marketing is clearly defined in titles, job descriptions, and organizational charts. The act of marketing, however, can spread across any number of departments and functions and, in reality, can be executed by anyone.

Fundamentally, it is the act of marketing that directly affects the cross-functional team sport known as customer experience. In fact, Constellation Senior Vice President and Principal Analyst Nicole France often calls customer experience a mindset—a unifying strategy for the entire organization based on and in the service of the customer. It is not a toolset or a platform. This is why the act of marketing is so critical: It can deliver moments that influence customers, respond to them, and—when done well—inspire them to traverse the path between their investigations and their transactions.

Modern marketing isn’t just about engaging with the connected customer. It is also about meeting the rising tide of an experience-starved economy. The old mindset of command-and-control marketing, where marketers build journeys for obedient customers to follow, is being set aside. The new foundation for engagement is less about the rigidity of a funnel and more about being ready to reach and meet customers where they expect brands to appear and interact.

Overall, Adobe Summit 2021 reinforced Adobe’s understanding of this increasingly complex world of marketing—and clearly telegraphed that Adobe, just like marketing, intends to bring the CIO and the IT teams driving digital transformation along for the ride. Adobe Summit reclaimed a bit of the optimism that had been understandably lost in the chaos of 2020. Arguably, the spirit of fun and unbridled joy still seems centered on Adobe Creative Cloud. Only time will tell if Adobe Summit, and Adobe Experience Cloud, can celebrate the business of marketing as openly as Adobe Creative Cloud celebrates creators.

Here is a quick peek at the Adobe Summit 2021 announcements that turned my head:

Adobe Journey Optimizer: Built on Adobe Experience Platform, Adobe Journey Optimizer benefits from a unified and normalized data model, allowing for dynamic and event-based response to a customer’s signal. With some nice artificial intelligence (AI) and machine learning (ML) services and capabilities on top, Adobe Journey Optimizer takes the old vision of “set it and forget it” campaign drips and pivots into that journey-of-you mindset that experience-hungry marketers have been discussing for years.

Why it matters: Despite our best intentions, establishing journeys for an audience of one can be painful, landing more squarely in the realm of sending email blasts to an audience-of-one segment. Building out and perfecting a journey can be time-consuming, and to be frank, that is time many marketing teams don’t have. Yet it is exactly the holistic engagement experience that customers crave. When you extend the expectation for relevant and contextual journeys to reach beyond the walls of marketing, execution—let alone optimization—can feel impossible. The importance of tools such as Adobe Journey Optimizer is the capacity to expand the view of where and how behaviors and events can influence the customer’s journey, especially when those events reshape or redirect a customer’s path. We can’t afford to assume that our only triggers for engagement come from marketing-driven channels. Adobe Journey Optimizer sets out to do just what it claims to do—optimize the journey that the customer is firmly in control of.

Adobe Customer Journey Analytics: If Adobe Journey Optimizer puts touches in the context of the customer, Adobe Customer Journey Analytics puts omnichannel journey data in the context of the business. With flexible dashboards that are relevant across multiple teams and stakeholders, everyone contributes and stays informed of the insights and key performance indicators (KPIs) that are most relevant to and for them. Simplified data collection, governance and privacy controls, and dashboards that can address both the customer’s and the business’s needs in real time are just the start of the analytics journey.

Why it matters: Analytics, and more specifically marketing analytics, is turning a corner. No longer the realm of tactical measurement and tracking of operational performance, marketing analytics is maturing to define specific KPIs informed by the business, by the strategic goals of marketing itself, and finally by the tactics and points of operational execution. In the old view of marketing metrics—a world in which tactical measures sufficed—old tools for balancing and predicting media mix and accounting for marketing resources gave some peace of mind to finance officers tired of that sinking feeling that marketing investments were akin to burning money. However, through the lens of a true growth-driving chief marketer, those analytics were just operational goalposts purpose-built for tactical optimization. What is needed is tools that quantify engagements—regardless of origin—that, when connected and analyzed as a whole, can truly quantify the value and impact of experience. Tools such as Adobe Customer Journey Analytics take that leap, with the firepower of an end-to-end platform that can turn the insights of journey analytics into actions.

Adobe Real-Time CDP for B2B: It should not come as a big surprise that CMOs have put the customer data platform (CDP) at the top of their tech wish list in 2021. What is surprising is how few CDPs have taken on the critical data issues that haunt many B2B organizations. Built on Adobe Experience Platform, the Adobe Real-Time CDP B2B edition extends the unified and normalized understanding of the customer, with a distinct focus on unifying data around people and accounts. The important piece of the puzzle here is the flexible Adobe Experience Data Model, which has been updated to natively support B2B data and allows for account hierarchies, unique B2B data objects, B2B enhanced profiles, and support for data from connected applications. B2B data can be ingested in a more secure framework, thanks to some pretty-well-thought-out data governance and identity capabilities that label sources and assign and enforce policies.

Why it matters: In the many flavors and sizes of CDPs on the market, most favor the scale and sheer velocity of data cascading across systems focused on executing B2C engagements. Few understand, let alone work to demystify, the specific issues that face B2B organizations looking to personalize engagements across an increasingly complex web of influencers, buyers, and users. This offering is likely to get heads turning among large enterprises that don’t fit into the perfectly defined lines of B2B or B2C. For the hybrid organization—and for those organizations with both B2B and B2C lines of business—this becomes an attractive single CDP for all scenarios, with the Adobe offering supporting both use cases with a single, unified profile.

Adobe Experience Manager Assets Essentials: I hesitate to call this a “lite” version of Adobe Experience Manager Assets. It is aptly dubbed “Essentials,” delivering the rightsized toolkit for the individual user just trying to make experiences happen. It comes packed with plenty of power under the hood—the difference being that Adobe Experience Manager Assets Essentials brings the right power, not watered-down power. Adobe Experience Manager Assets Essentials will be the default asset management solution across several Adobe Experience Cloud applications, starting with Adobe Journey Optimizer (June 2021) and Adobe Workfront later in 2021. The solution delivers a workspace that is easy to set up, easy to use, and built with collaboration in mind. It just makes the act of finding common, consistent images; videos; and a growing library of rich media assets easier. Organizations have focused on the democratization of data; Essentials looks to give that same open, flexible, and collaborative spirit to asset collaboration, access, and utilization. As the newly acquired Workfront solution becomes more deeply integrated and aligned across the Adobe portfolio, I expect to see Adobe Experience Manager Assets become an even more intentional bridge across the Adobe Creative and Adobe Experience Cloud applications, but for now, Adobe Experience Manager Assets Essentials is a lot to chew on, especially for organizations that have not taken the critical pivot to a digital asset management (DAM) strategy and solution to power that last mile of experience delivery.

Why it matters: Let’s say it for the record: For some organizations, asset management is achieved by email or mass storage “boxes” where an asset is more likely to go to die than achieve its intended outcome. The beauty of Adobe Experience Manager Assets Essentials isn’t just in the toolset or functionality. There is also a stunningly smart business need for a smaller, more readily available and potentially more budget-friendly resource that can be implemented in nonmarketing functions such as sales, service, and support. Essentials rightsizes for the real work of delivering consistency of experience in lockstep with relevance and context. In the spirit of full transparency: This was the announcement I was most excited about in a sea of interesting launches. It is woefully easy to discount the importance of a DAM solution and even easier to assume there is no such thing as a DAM strategy. You’d be DAM wrong.

The individual product announcements at Adobe Summit were in and of themselves important and impressive. But the biggest unveiling that should not be ignored is the reveal of Adobe’s new “marketecture” that shifts away from Adobe Experience Cloud’s serving as an umbrella for a loosely connected portfolio of acquisitions and legacy services. What was unveiled at Adobe Summit was a new view of Adobe Experience Cloud as a foundational system for engagement, built on data while having been created for organization-wide execution and engagement and bolstered with significant services such as AI/ML, identity, and governance, to name a few. Instead of being an acquisition showcase, Adobe’s view of the world starts with a unified data model in which an increasingly powerful portfolio of applications can coexist and, dare I say, connect far beyond the walls of the department known as marketing.

Adobe sits poised to serve as the unapologetic champion of the work of marketing. This new structure and vision for Adobe Experience Cloud is a starting point, which is interesting for a brand that has been synonymous with marketing since the 1980s. Then again, this might be the exactly right posture for Adobe as it races toward its 40th anniversary in 2022—reimagined to power the engagements of tomorrow without sacrificing its enduring legacy of creativity.

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Big Idea: Decision Velocity

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Alexander The Great

Guess what Alexander the Great's success on the battlefield is often credited to?

SPEED of decision-making or decision velocity.

Most of his opponents had bureaucratic decision architectures, where minor decisions would travel up multiple levels of command before traveling back down to be executed. Compared to Alexander the Great's decentralized command structure enabled by trust, his troops beat their enemies by simply "out-decisioning" them.

I think you know where I'm going here...

Any organization that can make decisions twice as fast or one hundred times faster than its competitors will decimate them. Time is a friend to those who can make faster, more accurate decisions. While the human brain may take minutes to decide, and it takes hours for a decision to work through an internal organizational structure, machines and artificial intelligence engines can make a decision in milliseconds in the digital world.

Whoever masters these automated decisions at high velocity will have an exponential advantage over those who don't.

Pre-order here: https://amzn.to/3utStwF

Get the latest book Everybody Wants To Rule The World

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News Analysis: Amazon Sidewalk Ups The Battle For Last Inch Connectivity

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Amazon Sidewalk  

Key Features Extend Last Inch Network

On Friday May 7th, 2021, Amazon announced a series of updates to Amazon Sidewalk.  Sidewalk delivers last mile connectivity via a network bridge protocol on Amazon's smart home devices.  The Sidewalk Bridge devices such as Echo products and Ring Floodlight Cams use a 900 MHz band and Bluetooth Low Energy (BLE), to extend WiFi networks .  The partnership with Tile announced in the Fall of 2020 can connect with any Bridge device to deliver not only the last mile, but the last inch inside community wide networks build on these Bridge devices.

Sidewalk Bridges

Sidewalk Bridges are devices that provide connections to Amazon Sidewalk. Today, Sidewalk Bridges include many Echo devices and select Ring Floodlight and Spotlight Cams. A comprehensive list of Sidewalk devices includes:

  • Echo (3rd generation and newer)
  • Echo Dot (3rd generation and newer)
  • Echo Dot for Kids (3rd generation and newer)
  • Echo Dot with Clock (3rd generation and newer)
  • Echo Plus (all generations)
  • Echo Spot
  • Echo Studio
  • Echo Input
  • Echo Flex
  • Ring Floodlight Cam (2019)
  • Ring Spotlight Cam Wired (2019)
  • Ring Spotlight Cam Mount (2019)

Sidewalk devices

  • Tile
  • Ring Car Alarm

New Announcements Extend Devices And Reach

The Amazon Sidewalk neighborhood network gained three new features:

  1. Tile joins Sidewalk to help customers find lost items.  Users can find items tagged by Tile via Alexa.  Echo devices will extend the coverage area to find Tiles bluetooth tagged objects.
  2. Level partners with Sidewalk to control smart locks.  The range of Amazon Sidewalk makes it easier for any smart device in connected homes.  Level lock connects directly to Ring Video Doorbell Pro devices.
  3. CareBand improves quality of life.  CareBand is helping dementia pateints with wearable technology that can provide indoor and outdoor activity racking.  Help buttons and automated analysis of activity patterns provide 24/7 monitoring.  With Amazon Sidewalk, no mobile devices are needed.
  4. Sidewalk supports compatible Echo devices on June 8th.  Echo devices can extend the reach of Sidewalk.  Amazon has provided smart privacy provisions.  Shared data is protected with three levels of encryption. Users decide which devices have access.  Data is automaticaly deleted every 24 hours.

 

Amazon's product boss Dave Limp has been quoted in multiple media outlets stating, "Sidewalk is all about the next billion things that are going to get on the network".  Amazon's attacking the gap between where celluar ends and where home WiFi begins.  Amazon's Sidewalk network will being support for Tile Bluetooth trackers on June 14th.

On the privacy side, Amazon has shipped the products with opt-in requirements for location based services to protect user privacy.  They've also shipped the connectivity with opt-out to make it easier to adopt.  This balance between privacy and convenience will improve adoption and also help customers easily experience the benefits but manage privacy issues.

The Bottom Line: The Battle Of Last Inch Connectivity Is Here

From Starlink to Comcast and Verizon, delivering on the last mile has been a goal.  Reaching the last inch has come with Apple AirTags with Bluetooth tracker and Amazon Sidewalk with Tile.  As tech giants double down on neighborhood and micro mesh connectivity, expect more partnerships and innovations.  Amazon has smartly enabled many of its Echo devices and all of its Ring devices to extend these networks providing mesh coverage and keeping its devices sticky and deliver more value added digital services.  This latest battle for the last inch will result in only a handful of players, creating the next opportunity for connected services.

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News Analysis: Crypto FOMO and Bitcoin's Rise Into the $1 Trillion Club

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The Road to $1 Trillion in Market Cap 

Crypto FOMO Drives Capital Flows Out Of Big Tech (For Now)

Retail investors have taken money out of the equity market and rotated into crypto to catch the wave.  With all crypto's now worth more than $2 Trillion in market cap and Bitcoin standing out at $1 trillion, this poses a risk to the US dollar dominance as the reserve currency.

  • Bitcoin ($57,000), $1T market cap
  • Ethereum ($3,491), $404 B market cap
  • Binance Coin ($643.74), $98 B market cap
  • Dogecoin ($.597), $77 B market cap
  • XRP ($1.67), $75 B market cap
  • Tether (.9999) $53 B market cap
  • Cardano ($1.63) $52 B market cap

The current rush into crypto and NFT's creates a casino atmosphere and "gold" rush into the next big thing.  Only a few crypto assets will survive in the long run.  Bitcoin's finite limit of 21 million coins, Ethereum's role in commerce, and Cardano seem to have the best prospects.  Expect this trend to continue into the summer and taper off as the reopen rotation gains traction.

The Bottom Line: Don't Count Big Tech Out

The first quarter of 2021 showed how the digital giants continued to grow at break neck paces.  While stock prices reflect a reopen rotation and crypto FOMO trend, few asset classes can show this type of year over year performance.  Don't count big tech out.  Big tech should remain a key component in portfolios.  However, not all big tech stocks are created equal.  Only the digital giants will continue to create competitive moats, invest in innovation, and play the long term game of global domination.

For the year:

  • Google up 30%
  • AirBnB up 22.68%
  • Oracle up 17.42%
  • IBM up 13.93%
  • SAP up 11.16%

Buying big tech stocks on the dip have often boded well for the long term investor.  Tesla, Apple, and Amazon are currently under performing for the year but have long term upside and most likely may be undervalued in the past week.  Take note, Honeywell's entry into the NASDAQ reflects how the company's portfolio is geared for more growth with Quantum Computing and Connected Buildings.

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Your POV

Are you in the repoen rotation or the crypto FOMO?  What are you investing in next?  Ready to find the next set of digital giants?

Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:

  • Developing your digital business strategy
  • Connecting with other pioneers
  • Sharing best practices
  • Vendor selection
  • Implementation partner selection
  • Providing contract negotiations and software licensing support
  • Demystifying software licensing

Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.

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Big Idea: Prioritize Long Term Investment Mindset Over Short Term Profits

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American Airlines OneWorld

Short Term Thinking Crushes Traditional Companies In Fight Against Digital Giants

If legacy companies want to compete with data giants in the age of extreme capitalism, spending capital on innovation needs to STOP being sacrificed for short-term profits.

In 2005, a survey by the Duke Fuqua business school showed that 55% of CFO's at 400 of America's largest public companies would rather sacrifice their firm's economic value to meet a quarterly expectation. Sadly, not much has changed since then.

Don't believe me? Look no further than the airline industry post-COVID-19.

Take American Airlines, which filed for bankruptcy in 2011 but became profitable again by 2014. During six years of record profits, the airline still failed to put together a rainy-day fund for a crisis. It also failed to modernize its technology systems, aircraft, and operating procedures to improve digital channels, enhance analytics, and develop better planning capabilities. Instead, it spent $12 billion of its positive cash flow since 2014 in stock buybacks. American isn't alone, either. Most airlines spent 97% of their free cash flow on buybacks from 2010 to 2020.

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Your POV

Does your organization take the long view or prioritize short term profits?  Are you reinvesting enough into innovation? Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:

  • Developing your digital business strategy
  • Connecting with other pioneers
  • Sharing best practices
  • Vendor selection
  • Implementation partner selection
  • Providing contract negotiations and software licensing support
  • Demystifying software licensing

Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.

New C-Suite Matrix Commerce Data to Decisions Innovation & Product-led Growth Revenue & Growth Effectiveness Future of Work Tech Optimization Insider Associates Leadership AR AI ML Machine Learning LLMs Agentic AI Generative AI Analytics Automation B2B B2C CX EX Employee Experience HR HCM business Marketing SaaS PaaS IaaS Supply Chain Growth Cloud Digital Transformation Disruptive Technology eCommerce Enterprise IT Enterprise Acceleration Enterprise Software Next Gen Apps IoT Blockchain CRM ERP finance Customer Service Content Management Collaboration M&A Enterprise Service Chief Analytics Officer Chief Customer Officer Chief Data Officer Chief Digital Officer Chief Executive Officer Chief Financial Officer Chief Information Officer Chief Information Security Officer Chief Marketing Officer Chief People Officer Chief Privacy Officer Chief Procurement Officer Chief Revenue Officer Chief Supply Chain Officer Chief Technology Officer Chief Operating Officer Chief Experience Officer

Marketing’s Complex Reaction to Ending the War

When Carl von Clausewitz penned On War in 1873, I seriously doubt he had marketing in mind, but in his articulation of the “fog of war” he proves that he gets us.

War is the realm of uncertainty; three-quarters of the factors on which action in war is based are wrapped in a fog of greater or lesser uncertainty. A sensitive and discriminating judgement is called for; a skilled intelligence to scent out the truth.

Now…go back and replace “War” with “Marketing.” I’ll wait here.

Our reality, as a culture, is that we have based our actions and language around war. We execute campaigns. We target. We blast. We relish when small actions go viral: like handing out smallpox infected blankets, we enjoy when something we knowingly unleash infects an unwitting population. We draw battle lines and segment our enemy, carefully noting their behaviors to exploit weaknesses. We hide code in the pixels and stalk our prey.

In military war games, the application of intelligence and enemy tracking, especially through friendly force tracking systems, is key to developing a winning strategy by understanding the behaviors and context of a target to determine the optimal time, attack vector and defense posture needed to win both the battle and the war. Go ahead and let me know when this stops feeling like a MarTech pitch.

In marketing’s culture of war, who is the enemy combatant? The customer is our enemy.

Now. Imagine that in this decades long game of war, someone comes along and says, sorry but we intend to cut off a key stream of skilled intelligence. In fact, we are going to demand that you must proclaim openly and clearly to your enemy what ammunition you have collected, how you will be using your ammunition and give clear opportunity for your enemy to walk off the battlefield with zero penalty or threat of attack. Not only that, but we are also going to cut off your supply of ammunition you obtain through other parties.

The death of the 3rd party cookie and the introduction of Apple’s App Tracking Transparency (ATT) has sent some marketers (and more than a few ad and social platforms) into a tailspin. The demise of the cookie, in particular, has been slowly ratcheting up the stress levels as brands and agencies come to terms with just how often 3rd party cookie data is leveraged for everything from “personalization” (yeah, I put it in quotes…) to campaign optimization.

But let’s take a breath and just look at consumer behaviors in the wake of the ATT launch in iOS 14.5. According to a study from Flurry Analytics, a whopping 96% of users in the US are opting OUT of ad tracking. Their tracking notes that from a sample of 2.5 million daily active users, about 4% are allowing apps access to the Identifier for Advertisers (IDFA). On the other side of the data-shock canal is a study from the team at AppsFlyer in which over 13.2 million instances of a prompt being shown to an end-user. In this study, 39% of those prompts resulted in the user tapping the ALLOW button. The highest rate of “allow” opt-in were across apps like photography (64%), Shopping (44%), finance (42%), food & drink (42%) and non-gaming apps (42%).

Two dramatically different data points from dramatically different points of view. What IS clear, regardless of data source: apps and brands that hold a pre-existing level of affinity with their user are enjoying the benefit of the relationship. Casual gamers, who are typically transient and bounce from farm to farm or puzzle to puzzle, are not typically brand-loyal…and their opt-outs are demonstrating that. For these developers, we are seeing an increase in requests for account sign-ups or pre-ATT prompt content that provides more space to share messages that are in context to the app and displayed at a time that feels less dire and intrusive than the ATT prompt.

Those developers who have taken the time to articulate the VALUE of this requested exchange are also avoiding falling off the cliff. It could be argued they are, for the first time, having an open and honest value exchange discussion with their new partner, the customer.

Customers are tired of being treated like the enemy, being forced to dodge and weave their way through brand’s interpretation of “personalization” that can often be more impersonal and aggravating than mutually valued and valuable. This new age of the customer is asking marketing as an industry and a strategy to rethink our posture of war. In the absence of certain weapons, is there another way to build points of connection between the goals of our businesses and the goals of our customers.

Marketing’s job is shifting from being the General perched on top of the fill looking to pierce the fog of war to craft winning strategy and more like a seasoned host or hostess that can understand that exact moment our guests could really use another glass of wine…and be ready with the perfect sip to keep the relationship and revelry going. It is about knowing who is and isn’t lactose intolerant…and accepting those last-minute curveballs of Kelly being vegan. Afterall, you don’t blast Kelly with information about burgers when she is telling everyone about Veganuary…yet that’s exactly what you do if Kelly is the enemy and you need to control her and force her to eat chicken.

It is easy (and understandable) to have big and bold reactions to the new path of privacy and customer-valued and defined identity. These shifts can feel like the rug is being pulled out from under our strategies. But they are also an opportunity to lean into the behaviors, intentions and higher-fidelity signals our customers are leaving across our own 1st party sources. This is why we’ve seen so many technology solutions from B2B like Demandbase to B2C like Criteo leaning into better ways to deliver efficient and effective engagements through 1st party data stores.

Regardless of where the cookie crumbles, the first thing we need to accept and change is our culture. We need to admit we have been fighting a war. We need to wave the white flag so we can see just how many of our customers are relieved and ready to welcome us to a new party.

New C-Suite Marketing Transformation Next-Generation Customer Experience Chief Marketing Officer Chief Digital Officer

Big Idea: It took 50 years for markets to consolidate down to a few dominant players. Now it takes ten.

Media Name: rwang0-ruletheworld-20210713-1620239992727.jpg

Big Idea: It took 50 years for markets to consolidate down to a few dominant players. Now it takes ten. Everybody Wants To Rule The World July 13, 2021 rwang0 Wed, 05/05/2021 - 12:55

The Pace Of Change Continues To Accelerate

It took 50 years for markets to consolidate down to a few dominant players. Now it takes ten.

Countless industries went through gradual reorganization from hundreds or thousands of small players down to a couple of giants. But until very recently, the keyword was “gradual.” There’s no longer going to be a monopoly in each industry. In the next ten years, I expect to see about 100 dominant players in 50 distinct markets worldwide, in most cases with a duopoly of two giants per market.

Those giants won’t be equally strong. The first company to establish a Data-Driven Digital Networks (DDDN) will usually apply its first-mover advantage to take about half of the total addressable market. A second, more reactionary player will take about a quarter of the total addressable market. The remaining 30% (give or take) will go to small players who find ways to survive but have no hope of catching up to the giants. The monopoly has now become a duopoly.

My forthcoming book, Everybody Wants to Rule the World, outlines the very ways in which our playing field is changing and how you can compete to not only keep up but to win. It will be available everywhere on July 13th.

Get the latest book Everybody Wants To Rule The World

Your POV

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